Beginner stock market investing online can be a scary and intimidating experience. However, with the right knowledge and help you can turn it into a very profitable experience. There are several very important tips you need to know before starting to invest online.
One of the first features you need to look for before you start investing in the stock market online is trading costs. Trading prices can be all over the map when it comes to online brokers. Costs can run anywhere from $4 all the way to $50 and up. If you plan on investing small amounts of money into stocks then you need to make sure your online broker has low trade costs (under $15) or these costs will eat up all your capital and any gains.
When choosing where to invest your money online you also need to be aware of account fees and account minimums. In order to protect your gains you have to make sure your account has low account maintenance fees. Some online investing companies will charge you anywhere from $25 up to $100 a year just to have an IRA. However, there are sites that offer free IRA accounts and that is where you want to make sure you invest your money.
Stock market investing beginners need to know that many online brokerage houses have minimum account balances. If you account falls below that minimum you will get charged fees that over time can take your balance down to $0! It is very important to make sure your brokerage account has no minimum investment account balance.
Most of the large brokerage houses will charge higher fees because they offer investment research tools. This is great to have, although, most of these tools can be found online at no cost. For beginner stock market investing it really is not necessary to pay for these tools, so make sure you are not paying higher fees to have these.
If you keep in mind all of these factors, investing online can be a great place to invest in the stock market. Investing online can lower your costs, place trades on your own, save time, and most importantly build up your wealth. Just be sure to do your research if you are beginner stock market investing with an online brokerage account.
Our top choice for a online investing account is ShareBuilder.com. You can buy stocks for $4 or less, by far the lowest rate online.
posted by halmz07 at 5:55 AM
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